Sunoco boss huddles with Marcus Hook officials

Officials from Sunoco, including new CEO Brian MacDonald, were in Marcus Hook this week to meet with Mayor James 'Jay' Schiliro and other officials.

MARCUS HOOK -- Brian MacDonald, Sunoco Inc.'s incoming CEO, came to town last week to object to a zoning change that could dramatically limit the company's plans for its soon-to-be shuttered refinery -- and also discussed the $800,000 budget hit the site's closing will create.

MacDonald met with local officials on Wednesday and expressed his opposition to the zoning change, which was to be voted on that night, Mayor James "Jay" Schiliro said. There was also talk about Sunoco helping the borough fill the budget gap.

"I don't remember how we got in that conversation," Schiliro said. "Yeah, yeah, it came up. It came up several times."

But Schiliro said the two matters were not related and the meeting was scheduled in advance.

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"(The timing) happened to be just a coincidence. They were totally unrelated," he said.

"I can confirm that we did meet with Mayor Schiliro and several other borough officials on Wednesday to provide an update on the sales process and potential alternative uses for the site," Golembeski wrote in a statement. "It was a good meeting and we agreed to continue our discussions.

"We also told the mayor that we view the proposed ordinance as counterproductive to finding alternative uses for the site that will generate new jobs, provide tax revenues and promote economic growth in southeastern Pennsylvania," he wrote.

He did not address the offer of financial assistance to the borough.

Golembeski said the company has had contact with borough officials on other occasions since the company's September announcement that it planned to close the refinery if a new buyer couldn't be found.

"We have been sharing as much information as we can about the challenges we face as a company and the sales process," he wrote.

Sunoco is closing its refineries in Marcus Hook and Philadelphia because of their declining financial performance. Almost 1,500 jobs will be lost.

Later on the night of the meeting with MacDonald, the zoning hearing board approved an amendment that would restrict the storage of petroleum products at the Marcus Hook site to only those manufactured there -- severely limiting a potential for imported refined products to be brought there.

"This zoning (decision) would completely shut down their terminal option and they were concerned about that," Schiliro said. "They wanted to see what we would do to change our minds about it."

The mayor said he has concerns about the property being used as a terminal for Marcellus Shale extractions because of safety concerns. "A lot of our residents are concerned about this being in our backyard," he said.

In the same discussion, MacDonald and borough officials spoke about the $800,000 the borough would lose from earned-income tax revenues if the refinery closes. Some crossing guards have already been eliminated and the borough is assessing closing the library.

"They would consider possibly helping us to bridge our gap financially from our community going under," Schiliro said of Sunoco.

He said he could not recall who brought up the topic.

Asked if the borough would kill the zoning amendment if Sunoco helped with the $800,000, Schiliro said, "Absolutely not. I'm not going to put our residents in more harm no matter how much they throw at me."

The zoning change was recommended on Feb. 16 by the Delaware County Planning Commission, which advises municipalities on various code changes but does not enforce them.

Five of the six commissioners at the meeting recommended the amendment; one abstained because of a conflict of interest.

"We thought it was the proper thing to do," said commission Vice Chairman Thomas J. Judge Sr. "That's what the borough would like to do and we saw no problem with that."

His sentiments were echoed by commission Chairman Thomas J. O'Brien. "First of all, we didn't see any problem with it," O'Brien said. "We really had no reason not to approve. It seems like an all-right thing to do."

Dennis DeRosa, manager, plan and ordinance review for the Delaware County Planning Department, was the planner who reviewed the proposal.

"It's reasonable and consistent with the purpose of the district," DeRosa said of the amendment to the borough's heavy industrial district, which includes the Sunoco refinery.

He said Sunoco was represented by attorney Carl Primavera at the county planning hearing.

"Carl's concern was that the petition would limit Sunoco's use of the land," DeRosa said. "He felt that it limits the hands of the owner. I did not concur."

He said there are a number of uses permitted there from storage to shipping.

"I didn't see this as limiting the use of the land," DeRosa said.

Schiliro said after a 30-day waiting period, the zoning change will be voted on by borough council.

"We have a lot of thinking to do as a council," Schiliro said. "Sun Oil has always been a good corporate neighbor. We hope they will continue to do so."